Kosmos claim that EEZ block is worth $500 million breaks down like this:
The Sao Tome government get 15% free carry in each EEZ block.
Kosmos get 30% and BP gets 55%, so assuming that a $1 a barrel valuation is given for P50 estimated Recoverable Hydrocarbons in place.
So 500 mbps ÷ 30% = 1.666 Billion barrels of P50 reserves or half that amount if one uses $2 a barrel valuation for P50 reserves.
In any event if EEZ block does contain that much oil, Kosmos is not very smart to allow this block to go un-purchased for a value that would be suitable for both parties involved.
One can only say to thinks, Kosmos is not telling the truth about EEZ block 4 or as Forrest Gump would say "Stupid Is As Stupid Does"!!
Kosmos board of directors should surely look into the Gross Mis-management of overlooking this block's true value or the Gross Mis-management of the Lawsuit by spending good money that should be going toward a suitable purchase price. This lawsuit is sure to fail, unless the Lawsuit would allow the time required to close a deal for All or Part of ERHE'S Deepwater Hydrocarbon Rights.
May be and Bidding War is Forth Coming.
Just Food for Thought, so please conduct your own research in case I am Mistaken.
GO "Tide"!!
Sneak-attack
